Mattel Profit Dips 1.8%; Hasbro Leaps 42%

Mattel Inc., the world’s No. 1 toy maker, said Thursday that second-quarter earnings fell 1.8%, which it blamed on weakness in Europe and a stronger dollar, while Hasbro’s earnings soared 42%.

Mattel, the maker of Barbie dolls and Hotwheels toys, said it still expects to post its eighth year of record earnings. The toy maker also said it will buy back 5.75 million of its shares in the third quarter.

Hasbro, the world’s second-biggest toy maker, said its earnings were helped by lower raw-material prices, rising revenue and its efforts to contain costs despite slimmer margins.

In February, Mattel withdrew a $5.2-billion offer to buy Hasbro, citing the “intolerable climate” created by its competitor’s use of the media and politicians to fight the proposed takeover.

El Segundo-based Mattel posted net income of $66.3 million, down from $67.5 million a year earlier. Per-share earnings were 24 cents in both periods, a penny less than the average estimate from Wall Street analysts.

Net income of Pawtucket, R.I.-based Hasbro jumped to $5.99 million, or 7 cents a share, from profit from operations of $4.23 million, or 5 cents, a year earlier.

In the year-ago quarter, a charge of $19.1 million, or 22 cents a share, from the discontinued development of a virtual-reality game system made a loss of $14.9 million, or 17 cents.

Hasbro’s earnings exceeded Wall Street’s expectations of 6 cents.

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McDonnell Douglas said second-quarter earnings rose 11% on higher profit from its military aircraft operations, despite a strike at its St. Louis plant.

Net income for the period rose to $188 million, or 87 cents a share, from $169 million, or 74 cents, in the 1995 quarter. Wall Street was expecting the St. Louis-based aerospace company to earn 86 cents a share, based on a survey of analysts.

In addition to building the F-18, McDonnell Douglas’ military aircraft include the C-17 transport plane, Apache helicopter, F-15 fighter and T-45 training plane.

The company’s St. Louis facility, where the F-18, F-15 and T-45 are assembled, has been in the midst of a six-week strike by machinist union members. Negotiations between the company and the union resumed on Thursday.

McDonnell Douglas said the effects of the strike on second-quarter earnings were minimal.

At a Glance:

Great Western Financial said its second-quarter earnings rose 57%, because of a wider spread between the interest rates it charged and the rates it paid.

The Chatsworth-based company said its net income rose to $79.3 million, or 52 cents a share, from $50.4 million, or 32 cents a share, a year earlier, a penny short of expectations.

Separately, the company said that it expects to receive preliminary approval next week from the federal Office of Comptroller of the Currency to create two new national banks in California and Florida.

Teledyne said second-quarter earnings rose 22% to $39.9 million, or 69 cents a share, from $32.6 million, or 59 cents, in the year-ago period.

Sun Microsystems reported a 34% increase in fiscal fourth-quarter profit before acquisition-related charges, earning $122.3 million, or 62 cents a share, after charges for the purchase of Integrated Micro Products and Lighthouse Design Ltd. Sun earned $128.2 million, or 63 cents a share, in the year-ago quarter.

Netscape Communications earned just under $1 million after special charges in the second quarter as sales continued to grow strongly. The company reported a profit of $906,000, or 1 cent a share, compared with a loss of $2.79 million, or 4 cents, in the year-earlier quarter when it was privately held.

Merck said second-quarter earnings rose 13% to $972.1 million, or 80 cents a share, up from $858.1 million, or 69 cents, a year earlier.

Union Pacific said second-quarter earnings rose 24% to $186 million, or 90 cents a share, from $150 million, or 73 cents, in the year-ago period.

Amgen said second-quarter earnings rose 31%, beating Wall Street estimates, to $179 million, or 64 cents a share, up from $138 million, or 49 cents, for the year-earlier period.

20th Century Industries reported a net profit of $31.9 million, or 46 cents a share, compared with $14.6 million, or 18 cents, in the year-ago period.

Bank of Boston said its second-quarter earnings rose 13% to $150.1 million, or $1.28 a share, from net income of $133.3 million, or $1.11, a year earlier.

Dial said its second-quarter earnings rose 2.9% to $46.3 million, or 51 cents a share, from $45 million, or 51 cents, a year earlier.

Bally Entertainment said second-quarter earnings almost doubled to $17.4 million, or 25 cents a share, up from net income $9.38 million, or 17 cents, a year earlier. In June, the company agreed to be acquired by Hilton Hotels.

Dean Witter Discover said second-quarter earnings rose less than 1% to $238.8 million, or $1.39 a share, from $237.5 million, or $1.35, a year ago.

Bausch & Lomb posted a 41% drop in second-quarter profit, earning $30.26 million, or 54 cents a share, down from $51.59 million, or 89 cents, in the same period last year.

Tandy said its earnings fell 75% during the second quarter, earning $9.3 million, or 13 cents a share, compared with $38 million, or 55 cents, in the year-ago period.

Alumax said second-quarter profit fell 29% to $28 million, or 56 cents a share, compared with net income of $39.2 million, or 82 cents, in the year-earlier quarter.